Radio Shack 2008 Annual Report Download - page 66

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In October 2008, the FASB issued FASB Staff Position No. FAS 157-3, “Determining the Fair Value of a
Financial Asset When the Market for That Asset Is Not Active.” This staff position clarifies the application of
SFAS 157 in determining the fair values of assets or liabilities in a market that is not active. This staff position
became effective upon issuance, including prior periods for which financial statements have not been issued.
We have adopted this staff position for the consolidated financial statements contained within this Form 10-K.
The adoption did not result in a material impact to the consolidated financial statements.
NOTE 3 – SUPPLEMENTAL BALANCE SHEET DISCLOSURES
Accounts and Notes Receivable, Net: As of December 31, 2008 and 2007, we had the following accounts
and notes receivable outstanding in the accompanying Consolidated Balance Sheets:
December 31,
(In millions) 2008 2007
Receivables from vendors and service
providers, net
$ 144.2
$ 156.9
Trade accounts receivable 68.6 62.1
Other receivables 30.6 39.5
Allowance for doubtful accounts (1.5) (2.5)
Accounts and notes receivable, net $ 241.9 $ 256.0
Receivables from vendors and service providers relate to earned marketing development funds, wireless
activation commissions, residual income, promotions and other rebates from our third-party service providers
and product vendors, after taking into account estimates for service providers’ customer deactivations and
non-activations, which are factors in determining the amount of wireless activation commissions and residual
income earned.
The change in the allowance for doubtful accounts is as follows:
December 31,
(In millions) 2008 2007 2006
Balance at the beginning of the year $ 2.5 $ 2.5 $ 0.9
Provision for bad debts included in selling,
general and administrative expense 0.6 0.4 0.4
Uncollected receivables (written off)
recovered, net
(1.6)
(0.4)
1.2
Balance at the end of the year $ 1.5 $ 2.5 $ 2.5
Other Current Assets, Net:
December 31,
(In millions) 2008 2007
Deferred income taxes $ 63.9 $ 75.4
Other 35.1 20.3
Total other current assets, net $ 99.0 $ 95.7
Property, Plant and Equipment, Net:
December 31,
(In millions) 2008 2007
Land $ 2.7 $ 10.6
Buildings 55.0 55.0
Furniture, fixtures, equipment and
software
679.6
682.4
Leasehold improvements 358.6 367.7
Total PP&E 1,095.9 1,115.7
Less accumulated depreciation
and amortization
(789.5)
(798.6)
Property, plant and equipment, net $ 306.4 $ 317.1
59